SEHK:1600

Stock Analysis Report

China Tian Lun Gas Holdings

Executive Summary

China Tian Lun Gas Holdings Limited, together with its subsidiaries, engages in the transportation, distribution, and sale of natural gas and compressed natural gas through its gas pipeline connections in the People’ Republic of China.

Snowflake

Fundamentals

Undervalued with solid track record.

Share Price & News

How has China Tian Lun Gas Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.9%

SEHK:1600

2.3%

HK Gas Utilities

0.7%

HK Market


1 Year Return

-1.5%

SEHK:1600

5.2%

HK Gas Utilities

-5.3%

HK Market

1600 underperformed the Gas Utilities industry which returned 6.5% over the past year.

1600 outperformed the Market in Hong Kong which returned -3.3% over the past year.


Share holder returns

1600IndustryMarket
7 Day3.9%2.3%0.7%
30 Day-2.6%-2.9%4.9%
90 Day0.1%-1.7%-3.7%
1 Year1.1%-1.5%7.2%5.2%-1.8%-5.3%
3 Year19.4%12.6%60.8%51.6%16.4%4.6%
5 Year-3.2%-8.7%37.8%25.1%18.0%-1.7%

Price Volatility Vs. Market

How volatile is China Tian Lun Gas Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Tian Lun Gas Holdings undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

China Tian Lun Gas Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).

China Tian Lun Gas Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

China Tian Lun Gas Holdings is good value based on earnings compared to the HK Gas Utilities industry average.

China Tian Lun Gas Holdings is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

China Tian Lun Gas Holdings is good value based on expected growth next year.


Price Based on Value of Assets

China Tian Lun Gas Holdings is overvalued based on assets compared to the HK Gas Utilities industry average.


Next Steps

Future Growth

How is China Tian Lun Gas Holdings expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

19.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

China Tian Lun Gas Holdings's revenue is expected to grow by 16.8% yearly, however this is not considered high growth (20% yearly).

China Tian Lun Gas Holdings's earnings are expected to grow by 19.8% yearly, however this is not considered high growth (20% yearly).

China Tian Lun Gas Holdings's revenue growth is expected to exceed the Hong Kong market average.

China Tian Lun Gas Holdings's earnings growth is expected to exceed the Hong Kong market average.

China Tian Lun Gas Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

China Tian Lun Gas Holdings is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has China Tian Lun Gas Holdings performed over the past 5 years?

24.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

China Tian Lun Gas Holdings has delivered over 20% year on year earnings growth in the past 5 years.

China Tian Lun Gas Holdings's 1-year earnings growth exceeds its 5-year average (75.3% vs 24.1%)

China Tian Lun Gas Holdings's earnings growth has exceeded the HK Gas Utilities industry average in the past year (75.3% vs -4.6%).


Return on Equity

Whilst China Tian Lun Gas Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

China Tian Lun Gas Holdings used its assets more efficiently than the HK Gas Utilities industry average last year based on Return on Assets.


Return on Capital Employed

China Tian Lun Gas Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is China Tian Lun Gas Holdings's financial position?


Financial Position Analysis

China Tian Lun Gas Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

China Tian Lun Gas Holdings's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

China Tian Lun Gas Holdings's level of debt (135.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (101.9% vs 135.2% today).

Debt is not well covered by operating cash flow (8.9%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.1x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.7x debt.


Next Steps

Dividend

What is China Tian Lun Gas Holdings's current dividend yield, its reliability and sustainability?

4.46%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase China Tian Lun Gas Holdings before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

China Tian Lun Gas Holdings's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.19%).

China Tian Lun Gas Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (6.08%).

Whilst dividend payments have been stable, China Tian Lun Gas Holdings has been paying a dividend for less than 10 years.

Dividend payments have increased, but China Tian Lun Gas Holdings only paid a dividend in the past 3 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.6x coverage).


Next Steps

Management

What is the CEO of China Tian Lun Gas Holdings's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Zhenyuan Xian (44yo)

4.7yrs

Tenure

CN¥661,000

Compensation

Mr. Xian Zhenyuan has been Chief Executive Officer of China Tian Lun Gas Holdings Limited since January 8, 2015. Mr. Xian has been the General Manager of China Tian Lun Gas Holdings Limited since 2010. Mr. ...


CEO Compensation Analysis

Zhenyuan's remuneration is lower than average for companies of similar size in Hong Kong.

Zhenyuan's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.5yrs

Average Tenure

46yo

Average Age

The tenure for the China Tian Lun Gas Holdings management team is about average.


Board Age and Tenure

7.3yrs

Average Tenure

48.5yo

Average Age

The tenure for the China Tian Lun Gas Holdings board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellCN¥2,886,05316 Apr 19
IFC Asset Management Company, LLC
EntityCompany
Shares324,750
Max PriceCN¥8.89

Ownership Breakdown


Management Team

  • Raymond Tam (55yo)

    Company Secretary

    • Tenure: 0.2yrs
  • Yingcen Zhang (56yo)

    Founder & Chairman of the Board

    • Tenure: 0yrs
    • Compensation: CN¥841.00k
  • Zhenyuan Xian (44yo)

    CEO, GM & Executive Director

    • Tenure: 4.7yrs
    • Compensation: CN¥661.00k
  • Yi Feng (40yo)

    Deputy GM & Executive Director

    • Tenure: 8.9yrs
    • Compensation: CN¥380.00k
  • Chaoyang Xie (56yo)

    General Manager of Baiyin Natural Gas Company Limited

    • Tenure: 0yrs
    • Compensation: CN¥122.00k
  • Tao Li (47yo)

    Deputy GM & Executive Director

    • Tenure: 7.3yrs
    • Compensation: CN¥380.00k
  • Min Liu (45yo)

    GM & Executive Director

    • Tenure: 0.3yrs
  • Kevin Qian (35yo)

    Chief Operating Officer

    • Tenure: 0yrs

Board Members

  • Yingcen Zhang (56yo)

    Founder & Chairman of the Board

    • Tenure: 0yrs
    • Compensation: CN¥841.00k
  • Zhenyuan Xian (44yo)

    CEO, GM & Executive Director

    • Tenure: 4.7yrs
    • Compensation: CN¥661.00k
  • Yi Feng (40yo)

    Deputy GM & Executive Director

    • Tenure: 8.9yrs
    • Compensation: CN¥380.00k
  • Liuqing Li (45yo)

    Independent Non-Executive Director

    • Tenure: 8.9yrs
    • Compensation: CN¥60.00k
  • Jun Zhao (56yo)

    Independent Non-Executive Director

    • Tenure: 8.9yrs
    • Compensation: CN¥60.00k
  • Tao Li (47yo)

    Deputy GM & Executive Director

    • Tenure: 7.3yrs
    • Compensation: CN¥380.00k
  • Min Liu (45yo)

    GM & Executive Director

    • Tenure: 0.3yrs
  • Michael Yeung (64yo)

    Independent Non-Executive Director

    • Tenure: 4yrs
    • Compensation: CN¥133.00k
  • Jiansheng Wang (63yo)

    Non-Executive Director

    • Tenure: 4yrs
    • Compensation: CN¥132.00k
  • Jin Liu (50yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: CN¥77.00k

Company Information

China Tian Lun Gas Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Tian Lun Gas Holdings Limited
  • Ticker: 1600
  • Exchange: SEHK
  • Founded: 2002
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: HK$7.667b
  • Shares outstanding: 999.62m
  • Website: https://www.tianlungas.com

Number of Employees


Location

  • China Tian Lun Gas Holdings Limited
  • Tian Lun Group Building
  • 4th Floor
  • Zhengzhou
  • Henan Province
  • 450003
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1600SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2010
TLJDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2010
1600SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 2010

Biography

China Tian Lun Gas Holdings Limited, together with its subsidiaries, engages in the transportation, distribution, and sale of natural gas and compressed natural gas through its gas pipeline connections in  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 12:48
End of Day Share Price2019/09/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.